Do you agree or disagree with the following? Explain why?

If, over time, wages and salaries on average rise at least as fast as inflation, why do people worry about how inflation affects incomes?

It is true that wages and salaries on average rise as fast as inflation but people still worry about how inflation affects income because people's purchasing power can be limited. For example, people on fixed incomes such as pensions or social security benefits, may not see their income rise in line with inflation. This can lead to a decline in their real purchasing power over time, making it more challenging to afford necessities. Another example of why people could be worried about how inflation affects income is uncertainty and planning. Even if wages rise with inflation, uncertainty about future inflation rates can make financial planning difficult. People may be unsure about the future value of their savings, investments, and retirement accounts, leading to more cautious spending and saving behaviors.